Vancouver Halts Bitcoin Reserve Plan Despite Growing States Adoption
Highlights
- Vancouver’s plan to create a municipal Bitcoin reserve has been halted.
- Officials pointed to limited staff resources and other city priorities as reasons for ending the plan.
- U.S. states have continued pushing forward with crypto adoption.
Vancouver’s city law has blocked the Bitcoin reserve plan proposed by its mayor. This comes despite the adoption being seen in other states.
City Law Blocks Vancouver Bitcoin Reserve Plan
Mayor of Vancouver, Ken Sim, has seen its reserve plans halted under the Vancouver Charter and the British Columbia Municipal Finance Authority Act.
A briefing paper proposed that the 2024 motion for Vancouver to become a “bitcoin-friendly city” be closed after the reserve plans were deemed to break the rules under the city’s charter.
“Staff has conclusively determined that under the Vancouver Charter, Bitcoin is not an allowable investment asset for the city, and therefore recommends that this work be concluded,” the report said.
The Vancouver Charter is the provincial legislation that governs several operations in the city. The report also cited the need to reprioritize staff and other city initiatives.
In presenting the proposal in 2024, the mayor said that the motion was also intended to assist the city in hedging against inflation through the use of cryptocurrency. This has been described as “digital gold” due to its supply, which is capped at 21 million coins.
“As an open, decentralized, and secure digital asset, Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency debasement,” the motion read.
The cancellation of the Vancouver Bitcoin reserve plan may be due to the decline in the price of the crypto. The argument that crypto serves as an inflation hedge has been undermined greatly in recent times. This is mainly the price of BTC, which had risen to above $126,000 in October 2025, dropped by 50% to return to its 2024 price. to lows of around $60,000.
Adoption Surges in U.S. as Canada Struggles to Keep Pace
While Canada faces resistance in its law provisions, states in the U.S have continued adopting the coin. This comes after lawmakers in Missouri moved forward with a Bitcoin reserve bill as Vancouver stalls. This would see it store the cryptocurrency in the state’s funds. This would also allow the state treasurer to invest, purchase, and hold the cryptocurrency using the state’s funds.
Lawmakers in Kansas also proposed another bill that would establish a Bitcoin reserve. This would comprise cryptocurrencies and “other digital-only assets” rather than making direct purchases of BTC.
Earlier this week, Indiana also enacted a bill protecting Bitcoin rights, allowing the use of crypto assets in its retirement plans.
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